A Company That Uses the Perpetual Inventory Method Purchases Inventory

question 77

Multiple Choice

A company that uses the perpetual inventory method purchases inventory for $2,000 from a vendor on account,FOB shipping point,with terms of 2/10,n/30.The company paid the shipper $100 cash for freight in.
-The company then returned $200 of damaged goods and got an allowance from the vendor.The company paid the vendor 8 days after the sale.Assuming this was the only transaction affecting inventory,and that there was no beginning balance,what would the cost basis of the inventory be?

• A) $1,764
• B) $1,864
• C) $2,100
• D) $1,900

---

Definitions:

Public Good

A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.

Police Services

Essential public services provided by the police, focused on maintaining public order, enforcing the law, and protecting citizens and their property.

Trash Removal

The collection, transport, processing, and disposal or recycling of waste materials from homes, businesses, and other sources.

Elected Officials

Individuals chosen by voters to hold public office and make legislative or executive decisions.